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Glossary 1 min read

Employee

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An employee is an individual who works for an employer under a formal employment relationship and receives compensation in exchange for their labour. Employees typically work under the direction and control of the employer and are entitled to specific legal rights and protections defined by employment law.

Employees may be hired on a full-time, part-time, temporary, or fixed-term basis, and their rights and obligations vary depending on local labour regulations and contractual terms.

  • Employee: works under the employer’s control, receives statutory benefits, and is protected by employment law.
  • Independent contractor: operates independently, manages their own taxes, and is not entitled to employee benefits.

Correct classification is especially important for companies engaging workers across borders.

  • Permanent employee: employed on an ongoing basis with full statutory rights.
  • Fixed-term employee: hired for a specific period or project.
  • Part-time employee: works fewer hours than a full-time employee.
  • Temporary employee: employed for short-term or seasonal needs.
  • International employee: works for an employer outside their home country. 

Each type carries different legal and payroll obligations depending on jurisdiction.

Mauve Group supports organisations in managing employees globally through Employer of Record (EOR), global payroll, and global compliance services.

We help businesses:

  • Employ staff compliantly in new countries
  • Ensure correct employee classification
  • Manage contracts, benefits, and statutory entitlements
  • Process accurate and timely payroll
  • Reduce employment and permanent establishment risks.

With expertise across 150+ countries, Mauve Group enables organisations to manage employees confidently and compliantly worldwide.

  • Employer: the individual or organisation that hires and pays employees.
  • Employment law: regulations governing employee rights and workplace obligations.
  • Employer of Record (EOR): a third-party provider that legally employs workers on behalf of a company.
  • Global payroll services: managing employee salaries, taxes, and compliance across countries.
  • Human resources (HR): the function responsible for managing employees and workplace policies.
  • Independent contractor: a self-employed individual providing services outside an employment relationship.